When uncertainty hits, the instinctive response for many families is simple. It is to bring all the money back to India. For lakhs of Indians living in the Gulf, the ongoing US war on Iran was not just another international headline. It was personal. The Government of India confirmed the safe return of more than 52,000 Indian citizens from the Gulf region following regional disruptions earlier this year.
Chartered accountants are now dealing with NRIs and say more Indians are now reviewing emergency funds, reassessing investments and even planning backup relocation strategies. So, if an NRI has to suddenly leave the UAE, what happens to everything they built?
But experts say this emotional reaction can itself become financially damaging. In an exclusive interaction with Financialexpress.com, tax consultants share advice.
“The first step is to know what is exposed. The second is to avoid a poor currency decision,” says CA Sagar Soman, Consultant, NRI Taxation and Cross-Border Wealth Advisory. He says many NRIs wrongly believe that physically returning to India means their entire financial life should immediately shift to India too.
“A UAE based NRI should quickly map bank balances, investments, insurance policies, loans, EMIs, gratuity receivables, Indian accounts and key documents. But protection does not mean converting everything into INR,” he says.
This becomes especially important when the rupee is under pressure against global currencies. “When the rupee is under pressure against major currencies, converting an entire UAE savings pool into INR can permanently lock in a currency loss,” Soman explains.
Instead of panic liquidation, he advises NRIs to focus on three things first — liquidity, documentation and accessibility. “The real protection is access, documentation and currency flexibility, not panic liquidation,” he says.
CA Ajay R. Vaswani, Founder of Aras and Company, says many families underestimate the importance of immediate emergency access.
“In case of any war like situation, it is important for NRIs to have at least 6 months emergency funds to cover the daily and emergency expenses,” he says. According to him, savings should not remain concentrated in one account or one geography. “Funds should be distributed across multiple accounts, with a portion kept in readily accessible liquid cash for emergencies,” Vaswani says. He also stresses on something many families ignore until it is too late — documentation.
“Physical and digital copies of insurance policies, investments, loan agreements should be made. It should also be easily accessible to close family members. Also ensure nominees are added in your bank accounts, investments and insurance policies in both India and UAE,” he says.
CA Vidhu Duggal, Practising Chartered Accountant at Vidhu Duggal and Company, says the biggest crisis during emergencies is often not market loss, but lack of preparedness.
“The first priority should be financial visibility and liquidity. Many NRIs have investments, bank accounts, insurance policies, loans and tax obligations spread across multiple countries, but documentation is often fragmented,” she says. “In uncertain situations, the biggest risk is not always market volatility — it is lack of access and lack of preparedness.”
Duggal says NRIs should immediately ensure that all accounts are accessible online, KYC requirements are updated and important documents are securely digitised. She also says many expatriates remain overexposed to one geography. “This is also the time to review whether assets are overly concentrated in UAE real estate, employer-linked benefits, or illiquid investments,” she says.
The fear of loans and EMIs keeps many families awake
For NRIs, the biggest fear during instability is not investment losses. It is a monthly liability. Home loans in India, personal loans in the UAE, credit card dues, insurance premiums, rent commitments and school fees continue irrespective of geopolitical tensions.
A sudden relocation without financial planning can push families into defaults. “A sudden return should not create sudden defaults,” says Soman. He advises NRIs to prepare a detailed liability calendar covering all financial obligations in both India and the UAE. “The reserve should sit where the liability sits. UAE obligations need UAE liquidity. Indian EMIs need India liquidity,” he says.
He warns against transferring all savings to India without considering where expenses will continue. “If everything is converted into INR, the person may take an avoidable currency hit. If everything remains outside India, the family may face access problems during relocation,” he explains.
Soman says six months of committed outflows should ideally be treated as the minimum reserve during periods of uncertainty. “Families with large loans, one income, business uncertainty, elderly parents or children dependent on the NRI should build a longer runway, closer to nine to twelve months,” he says.
Duggal says one dangerous misconception among expatriates is assuming liabilities become irrelevant once they leave the UAE. “A sudden exit without properly addressing liabilities can create severe long-term financial and legal consequences,” she says.
“Many expats wrongly assume that once they leave the UAE, liabilities become secondary. In reality, defaults in the Gulf can significantly impact future travel, banking relationships, and financial credibility.”
She says borrowers should continue EMIs through funded accounts, maintain communication with banks and avoid becoming unreachable. “Avoiding cheque bounce situations linked to UAE liabilities” becomes extremely important during such periods, Duggal says.
A cancelled visa can trigger financial chaos
Many NRIs do not realise how deeply UAE residency status is connected to banking and investments. Something as simple as a visa cancellation or an expired Emirates ID can start a chain reaction. According to Duggal, UAE banks and financial institutions closely link account operations with visa validity and KYC status.
This can result in account restrictions, issues in operating investments, insurance renewal difficulties and delays in accessing end-of-service benefits. “Many NRIs are unaware that certain financial products and insurance arrangements are residency-dependent,” she says. Soman says the bigger problem is operational access.
“The risk is not always immediate closure. The risk is loss of operating control,” he says. “If the UAE residency visa or Emirates ID becomes invalid, bank KYC, credit facilities, insurance servicing, brokerage access, local address records and mobile linked authentication can become difficult.”
He says families often focus only on balances visible inside banking apps, while ignoring whether they will actually be able to coordinate paperwork from outside the UAE. “The NRI may still own the asset, but managing it from outside the UAE may become slow and document heavy,” he says.
This becomes even more complicated when there is nobody locally available to coordinate bank queries, gratuity settlements, insurance communication or security deposit closures. “A balance visible on an app is not enough. Access, documents and local coordination must also survive the crisis,” Soman says.
Why emergency liquidity suddenly matters more than returns
For years, many NRIs focused heavily on long-term investments, property purchases and wealth creation. But crises expose a different problem — illiquidity.
Experts say many financially comfortable families still struggle during emergencies because their wealth is locked inside assets that cannot be accessed quickly.
“Emergency liquidity becomes the single most important financial buffer during geopolitical uncertainty. In such situations, access matters more than returns,” says Duggal. According to her, expats should ideally maintain at least six to twelve months of essential expenses in highly liquid and easily accessible form.
“This should not remain entirely locked into real estate, long lock-in investments, or retirement products,” she says.
Soman believes emergency reserves should not be treated as idle money. “Its purpose is not return maximisation. Its purpose is to prevent a forced sale of good assets at the worst possible time,” he says. He also says liquidity planning should involve currency planning.
“If obligations exist in both UAE and India, the reserve should not be blindly held in one currency or one jurisdiction,” Soman explains. He says depending on residential status and eligibility, NRIs may consider options like FCNR deposits, RFC accounts and GIFT IFSC banking structures for foreign currency management.
“In serious wealth planning, liquidity is not idle money. It is the right to make calm decisions when markets, jobs and borders become uncertain,” he says. For many UAE-based NRIs, geopolitical tensions no longer feel like distant headlines. Whether it is uncertainty in the Middle East, fears around jobs, visa rules, or sudden travel disruptions, families are increasingly asking one question: what happens to our money if we need to move quickly?
Financial experts say the biggest risk during such situations is not always the crisis itself, but the panic that follows. In a rush to “secure” their finances, many expats end up making decisions that hurt them years later.
According to Sagar Soman, many NRIs treat returning to India as only an emotional decision, while ignoring its financial and legal impact.
“The return should be mapped before assets are liquidated,” he says, adding that tax residency rules, FEMA compliance, bank account structures, and treaty benefits must all be reviewed before major decisions are taken.
The costly mistakes many NRIs make during emergencies
One of the most common reactions during uncertainty is to liquidate investments quickly. Experts warn that this can permanently damage long-term wealth.
Vidhu Duggal says most financial mistakes made during emergencies are panic-driven rather than strategic. She points out that many expats abruptly sell long-term investments when markets are volatile, close UAE bank accounts without thinking about future paperwork requirements, or break fixed deposits and insurance plans midway.
Another major issue is transferring large sums of money without proper documentation. In cross-border finance, source documents, tax papers, and transaction records become extremely important later, especially during scrutiny or compliance checks.
“Another major mistake is acting solely based on social media forwards or informal advice during crisis periods,” Duggal says. “Cross-border financial decisions involve tax, regulatory, banking, and succession implications that need structured evaluation.”
Experts also warn against shutting down UAE banking relationships too early. Final salary payments, gratuity settlements, loan repayments, and future documentation often remain linked to these accounts even after a person leaves the country.
Ajay R. Vaswani says many expats unknowingly create financial trouble for themselves by closing accounts while liabilities still exist.
“Expats risk becoming defaulters on loans or liabilities if all their UAE accounts are closed while outstanding obligations still exist,” he says. Currency decisions made in panic can also backfire. Some NRIs convert all their foreign currency into Indian rupees during periods of rupee weakness without considering future needs, exchange rate risks, or foreign currency holding options.
Why treaty planning is becoming important for UAE NRIs
Experts say another area where many NRIs lose money is tax planning. Soman points to Indian mutual fund investments as one of the most important planning areas for UAE-based NRIs. Under the India-UAE Double Taxation Avoidance Agreement (DTAA), certain mutual fund capital gains may potentially be managed more efficiently if the investor qualifies as a UAE tax resident and maintains proper documentation.
According to him, this is not a shortcut or “no tax” loophole, but structured treaty-based planning that requires valid Tax Residency Certificates (TRC), correct disclosures, and proper calculations.
“This is where planning can create real value,” Soman explains. “A UAE NRI with a large Indian mutual fund portfolio may consider redeeming and reinvesting while UAE treaty residency is still clear and properly documented.” In simple terms, the timing of investment decisions can significantly change the tax burden later.
The new financial reality for globally mobile families
Experts believe geopolitical uncertainty is no longer temporary. Instead, it has become a permanent part of financial planning for expatriate families.
This is changing how NRIs are being advised to think about money. The focus is slowly shifting from only wealth creation to wealth protection and continuity. Duggal says globally mobile families now need proper contingency frameworks instead of scattered financial arrangements across countries.
That includes having emergency liquidity, clear nominee structures, updated insurance coverage, tax residency planning, FEMA-compliant investments, and organised digital financial records. “Many NRIs spend years building wealth internationally but very little time building contingency structures around that wealth,” she says.
Why every NRI now needs a crisis roadmap
Financial advisers say every UAE-based NRI should now maintain a written crisis and return roadmap. This should include details of bank accounts, investments, liabilities, insurance policies, nominee information, visa papers, tax records, and emergency contacts. Experts say families often know assets exist, but do not know where they are held, how to access them, or whom to contact during emergencies.
Soman says this becomes even more important for cross-border families where assets are spread across countries. “Many families know that assets exist, but not the bank, folio, policy number, adviser contact, login route, nominee status or claim process,” he says.
He also explains the importance of understanding options such as FCNR(B) deposits and RFC accounts. FCNR(B) deposits can help NRIs hold foreign currency while also offering potential tax advantages during the non-resident or RNOR phase. RFC accounts, meanwhile, become useful after returning to India for holding eligible foreign currency assets under FEMA rules.
Experts say the RNOR window — the transition phase after returning to India — is often wasted because many NRIs fail to plan in advance.
This period can be critical for reviewing foreign assets, restructuring investments, managing tax exposure, and updating financial arrangements before becoming fully taxable as an Indian resident.
Beyond investments, families also need protection planning
Another area many families overlook is insurance and succession planning. Several UAE residents rely heavily on employer-provided health insurance while abroad. But once they relocate, those policies may stop immediately, leaving families exposed.
Experts say health insurance, life insurance, nominee details, and claim access should all be reviewed before relocation, not after a medical emergency or death claim situation arises.
The larger message from advisers is clear in times of uncertainty, panic is expensive. The smarter approach, they say, is planning early, preserving liquidity, maintaining documentation, understanding tax rules, and ensuring that both money and family members can access financial resources smoothly during difficult times.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a qualified professional before making investment decisions.